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China is investigating whether Australia is dumping wine in the latest trade dispute to strain their relations
By
ROD McGUIRK Associated Press
August 18, 2020, 9:12 AM
4 min read
CANBERRA, Australia -- China on Tuesday began investigating whether Australia is dumping wine in a trade dispute that further strains relations between the countries and could shut the biggest export market for Australian wine.
The Chinese Ministry of Commerce said the anti-dumping investigation involved wine in containers of 2 liters (68 fluid ounces) or smaller imported from Australia from Tuesday.
The Australian government denied subsidizing exporters.
“We do find this deeply troubling, concerning and perplexing given Australia’s wine industry is not subsidized to export and it’s certainly not dumping product on the world market,” Trade Minister Simon Birmingham said. “Now it’s for China and Beijing to explain the rationale behind these actions and why they have moved to that stage of an investigation.”
China’s only other anti-dumping investigation of Australian products effectively closed the China market to Australian barley in May through crippling tariffs. Australia is appealing that decision.
The investigation of Australian wine exports, which made 1.1 billion Australian dollars ($795 million) from the Chinese market last year, could take between a year and 18 months.
Birmingham said he hopes China will not impose interim trade measures during the investigation.
China’s decision to shut out Australian barley a week after it banned beef exports from Australia’s four largest abattoirs over labeling issues has been linked to Australian calls for an independent investigation into the source of the coronavirus as well as responses to the pandemic.
Chinese Ambassador to Australia Cheng Jingye warned in an Australian newspaper interview in April that Australian wine could be targeted in a Chinese consumer boycott if the government persisted with its call for a coronavirus inquiry.
Asked if the wine investigation was a political tactic, Birmingham told reporters, “That’s really a question for China.”
“Our hope and expectation is that these matters should be considered and addressed on their merits and that means that Beijing and Chinese authorities should look at the evidence,” Birmingham said.
Graeme Shaw, owner of Shaw Wines outside Canberra, said Chinese tariffs would have a considerable effect on large Australian wine producers.
“I think the industry should have been expecting something from the comments from the Chinese ambassador,” Shaw told Nine Network television news.
Weihuan Zhou, a University of New South Wales international trade expert, suspected the wine probe was part of separate, decade-long trade dispute between the countries over anti-dumping rules, particularly over Australia’s allegations of Chinese dumping of steel products.
Bilateral relations had shown improvement since the pandemic after Australia distanced itself from U.S. security concerns over popular Chinese apps TikTok and WeChat, Zhou said.
“I don’t think it’s part of the previous political fight between Australia and China” over the coronavirus, Zhou said. “There have been positive signs of political improvement of the bilateral relationship.”
Shares in Australian wine exporter Treasury Wine Estates plunged as much as 17% on the Australian stock market on Tuesday on news of the Chinese investigation.
The Melbourne-based company reported to the Australian Securities Exchange in 2018 that it was one of several Australian wine exporters experiencing delays in getting wine through Chinese customs.
The company said in a statement to the exchange on Tuesday that it will “cooperate with any requests that we receive for information from Chinese or Australian authorities.”
Birmingham said Australian wine was the most expensive on the Chinese market after New Zealand wine. He said he had been unable to speak to his Chinese counterpart about the mounting trade disputes since last year.
“Australia is certainly not engaging in any type of war,” he said.
Australia has had a free-trade deal with China, its biggest export market, since 2015. Australia is regarded by some as the Western country most susceptible to Chinese economic pressure because of their close economic ties.
Zhou said he had long doubted that China would target Australian wine in its diplomatic dispute with Australia because Chinese investors would be harmed.
“The Chinese investors are trying to secure a production base in Australia so that they can provide sufficient supply back to the Chinese market,” Zhou said.
“That means that if China’s government decides to impose anti-dumping duties against Australian wine, that will hurt the Chinese investors as well,” he said.
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kiratni.blogspot.comChina is investigating whether Australia is dumping wine in the latest trade dispute to strain their relationsByROD McGUIRK Associated...
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MOMENT OF TRUTH Often, we paint a rosy picture of the wine world. For Black women, the lived experience of working in this space is often very different.
THE CONVERSATIONS I’ve had with women in the wine world in recent weeks have been unlike any I’ve had in the course of reporting this column. As the women, mostly Black women, I talked with spoke of their struggles to find a place in restaurants, retail or winery tasting rooms, they described environments rife with discrimination and abuse. While for me, wine connotes feelings of conviviality and warmth, it’s clear mine is a privileged viewpoint. When I observed as much to Atlanta-based sommelier Tahiirah Habibi, she explained that her experience as a Black woman in the wine world has been the opposite. “Wine wasn’t meant for us,” she said.
Ms. Habibi is among a number of wine professionals who have pointed out issues of inequity in a powerful industry organization, the Court of Master Sommeliers. Two months ago she posted an Instagram video describing a Court of Master Sommeliers two-day session in New York. “There are four instructors and one of them says, ‘In order to speak, you need to call her ‘master,’” Ms. Habibi said in her June 16 post. The word master is widely associated with the history of slavery in the U.S. “I kind of thought it was a joke…and it wasn’t,” she continued. “They stuck with this rule for two days and it literally crushed me.”
“ ‘I don’t want to be the person in charge of changing your company.’ ”
Members of the Court have criticized the organization’s failure to commit publicly to fostering equity and inclusiveness in its programs and in the hospitality industry in which it is so influential. Prominent members Brian McClintic, owner of Napa-based Viticole Wine Club (and star of the “SOMM” documentaries), and Nate Ready, winemaker and an owner of Hiyu Wine Farm in Oregon, resigned in letters published on social media, noting the Court’s longstanding silence on issues of racial injustice. (According to Devon Broglie, chairman of the Court of Master Sommeliers, Americas, in June, the organization officially resolved to stop using “master” alone or in conjunction with a name.)
Like other women I interviewed, Ms. Habibi described racist and sexist encounters during her work in restaurants. “Black people drink wine?” a customer once actually asked her. At the Brooklyn shop Good Wine, owner Heather Johnston often found she was ignored altogether. When Ms. Johnston, who is Black, bought the business in 2015, she kept an existing salesperson, a white man, on staff. When sales reps visited they presumed her employee was in charge. “Fifty percent of the time they just talked to him. It was like I wasn’t there,” she recalled.
Five years on, Ms. Johnston has built a strong business with a loyal, diverse clientele, but she still experiences what she called microaggressions. “Sometimes you question what your ears are telling you,” she said. I heard about plenty of macroaggressions as well. Ms. Johnston once took part in a tasting trip to Germany for wine retailers, organized by the marketing organization Wines of Germany. She was the only person of color in the group. While they were all traveling in a van, one retailer remarked to another, “As soon as a Black person walks in, I just break out the Moscato.” (The wine has been stereotypically associated with Black culture after featuring in some hip-hop songs.)
As the lone Black tasting room associate at two Napa Valley wineries in 2018-19, J’nai Gaither got questions from customers none of her colleagues had to deal with. There was the guest who asked Ms. Gaither how she knew about Burgundy because, he noted, “Burgundy is expensive.” Another derailed a tour. “I was explaining what [the winery] looked like in the 19th century, and she poked me with her finger and asked me if there was slavery in Napa,” Ms. Gaither recalled. It was such a bizarre pivot, Ms. Gaither asked, “Why are you asking me about slavery?” The woman kept repeating the question.
Even when she built a rapport with customers, some quickly crossed a line. “They actually felt comfortable enough to use the ‘N’ word,” said Ms. Gaither. And these were far from isolated incidents. “This happens to people of color all the time,” she added.
Lia Jones gave herself the middle name Sommelier on social media after applying for 76 wine jobs in New York in 2015-16. She never got the job, despite her extensive wine education, including a year’s study with the Sommelier Society of America, a sommelier-level certification from the Court of Master Sommeliers and completed level-three course work with the Wine & Spirit Education Trust. She also had substantial hospitality experience, including a position as captain at a prominent New York restaurant. When she did score an in-person interview, she was always the lone Black woman in the restaurant, interviewed by a white man. “It’s a club, it’s a community,” she said.
Eventually Ms. Jones moved to Los Angeles and took a job as a server at the restaurant in the NoMad Hotel. She was transferred back to New York, to sister restaurant Eleven Madison Park, in 2018. That year she founded Diversity in Wine and Spirits, a nonprofit advocacy group; she serves as executive director, currently working from her home in Belize. Her goal is to create a more equitable environment than she found in the restaurant world. The organization works with institutions including Diageo, one of the world’s largest spirits and beer producers; educational organization the International Wine Center; and SommCon, which offers seminars, internships and scholarships for wine professionals and those aspiring to careers in wine.
Victoria James, beverage director and a partner of Cote Korean Steakhouse in New York, is a white woman who shared tales of misogyny and abuse in her searing memoir, “Wine Girl,” published a few months ago. For all the harrowing experiences she details, Ms. James told me she was sure if she were Black the story would be worse. “I can’t begin to fathom what Black women go through,” she said.
For Jahdé Marley, a Black, Brooklyn-based sales representative for importer and distributor Indie Wineries, the solution has been to create a world in which she chooses to work. “My account run is filled with women and women of color and LGBTQ people,” she said, referring to the restaurant and retail clients to whom she sells wine.
She took this route after a job at a more corporate company where her (white, male) boss regularly berated her about the hair products she used. Ms. Marley wants to work in a place where enlightenment already exists, with women and people of color in positions of power. “I don’t want to be the first. I don’t want to be the person in charge of changing your company,” she said.
I don’t pretend to have answers on how best to bring about change in the wine world. But I can share these stories with readers. We often idealize the business of hospitality. For too long that business has been an often-inhospitable place.
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kiratni.blogspot.comMOMENT OF TRUTH Often, we paint a rosy picture of the wine world. For Black women, the lived experience of working in this space is...
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China's Ministry of Commerce said Tuesday it is launching an anti-dumping investigation into some wines imported from Australia.
Australia's Federal Trade Minister Simon Birmingham said in a statement that Chinese authorities "have also advised Australia that they are considering a request to launch a countervailing duties investigation."
"This is a very disappointing and perplexing development," Birmingham said, adding that "Australian wine is not sold at below market prices and exports are not subsidised."
The announcement comes amid growing geopolitical tensions between the two countries. China is Australia's top export market, and by far the largest destination for the island continent's wine exports by value, according to the government's industry authority, Wine Australia.
The Chinese investigation targets "wines in containers holding 2 liters or less," according to an English translation on the Commerce Ministry website.
A typical bottle of wine is about 0.75 liters.
The anti-dumping probe follows a request in early July from the China Alcoholic Drinks Association, the Chinese Ministry of Commerce said in a separate online statement Tuesday. The inquiry will look into potential dumping during 2019, and industry damages for the years 2015 to 2019, the statement said.
The investigation will last for one year — until August 18, 2021 — with the potential of being extended until February 18, 2022, under special circumstances, according to the ministry.
Australia had the largest share of China's imported wine market at 37%, according to data for the 12 months through May from Global Trade Atlas and cited by Wine Australia in an August 4 report.
France was second at 27%, followed by Chile at 13%, the report said.
Shares of Australian wine giant drop
Trading in shares of Australia's biggest wine company Treasury Wine Estates was briefly halted pending an announcement, according to a statement on the Australian Stock Exchange website. The shares tumbled more than 13% in Tuesday trading.
Treasury Wine Estates later said in a statement released by the Australian Stock Exchange that the company will cooperate with any requests for information from Chinese or Australian authorities. The company added it will remain focused on building its premium and luxury brands, and generally working to grow its contribution to China.
It was not immediately clear whether Treasury Wine Estates is part of the Chinese probe.
Australia exported 62% of its wine produced in the 12 months through the end of June, according to Wine Australia's report.
Mainland China was by far the largest market by value, with exports rising 0.7% to 1.1 billion Australian dollars ($790 million), the report said, noting growth in exports at higher prices and a decline at the lower-end of the market.
Wine Australia referred a CNBC request for comment to the national industry association Australian Grape and Wine.
The organization said in a statement that: "We believe that the Australian grape and wine sector is well placed to respond to this investigation and Australian Grape & Wine and our exporting companies will cooperate fully."
"The Australian industry welcomes the opportunity to build on these ties and work with the Chinese industry and government to further technical cooperation and develop lasting relationships," the association said.
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kiratni.blogspot.comChina's Ministry of Commerce said Tuesday it is launching an anti-dumping investigation into some wines imported from Australia.Australia's Federal...
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Pressoir.wine, an organization that holds wine events, is an extension of two wine extravaganzas — La Paulée, a series of annual celebrations, and La Fête de Champagne for Champagne tastings and dinners — founded by the sommelier Daniel Johnnes. Pressoir puts on wine trips, tastings and other events, and, with Covid-19, online Zoom wine classes with guest experts. At the end of the month, Kevin Zraly, a sommelier and teacher since 1978, will discuss the early years of his career. In advance of the talk, participants will have an opportunity to buy a bottle of Domaine Yvon Clerget Volnay Premier Cru Les Santenots 2017 he will discuss from Morrell, a wine shop.
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kiratni.blogspot.comPressoir.wine, an organization that holds wine events, is an extension of two wine extravaganzas — La Paulée, a series of annual celebrations,...
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Ben Aneff, managing partner of Tribeca Wine Merchants and the current president of the U.S. Wine Trade Alliance, told Business Insider, "There's a reality that most of the businesses that import and distribute these wines, they simply do not have the cash flow to deal with these tariffs long-term." He added, "There's going to come a point where they simply cannot afford to bring them in."
So, is there hope? When the 25 percent tariff was enacted in October of 2019, whiskey was also included in the list of taxed items. Food & Wine reported that prior to the tariff taking effect, some savvy single malt Scotch producers switched to shipping their product by air, rather than by sea, circumventing the tariff altogether. Is it possible the wine industry could find a similarly creative solution? Let's all ponder that over a glass of Bordeaux, shall we?
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kiratni.blogspot.comBen Aneff, managing partner of Tribeca Wine Merchants and the current president of the U.S. Wine Trade Alliance, told Business Insider, "There's...
